Progress is being made on legislation on the financial market bailout package, said White House chief macroeconomic adviser Edward Lazear on Thursday in an interview with CNBC.

Although the policy-maker does not know when the deal will pass, he said there is optimism on Capitol Hill that the deal will come to fruition soon.

The news comes on the heels of announcements from various congressional leaders that progress is being made, and that the Democrats in both the House and Senate have agreed to a plan.

"This is extremely important for the economy," said Lazear, adding that the credit market continues to be highly stressed.

Earlier this week, Lazear said he would defer his retirement plans until the worst is over.

By Erik Kevin Franco and edited by Sarah Sussman
©CEP News Ltd. 2008